Insi Ltd manufactures product J7524G and provides the following information for the last month: Budgeted figures: Variable manufacturing overheads R20 000 Fixed manufacturing overheads R48 000 Labour hours 4 000 Expected production 1 000 units Actual results: Variable manufacturing overheads R19 135 Fixed manufacturing overheads R49 880 Labour hours worked 4 300 Actual production 1 050 units Required: 1. Calculate the following variable manufacturing overheads variances (in Rands) and state if they are favourable or unfavourable: 1.1 Efficiency variance 1.2 Expenditure variance 1.3 Total variable overheads variance
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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